Revenue Recognition on Book Sales with High Returns) Uddin Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms...
The post-closing trial balance for Bugeja Co. is shown on page 349. The subsidiary ledgers contain the following information: (1) accounts receivable?? B. Cordelia $2,500, I. Togo $7,500, T. Dudley...
The following are specific transaction-related audit objectives applied to the audit of cash disbursement transactions (a through f), management assertions about classes of transactions (1 through...
The estimated demand curve for popsicles on a particular beach on a sunny summer day is given by Q = 130 3.5p, where p is measured in dollars. What is the predicted quantity if p = $ 2.00. If the...
The Snack Shack is a take-out food store at a popular beach resort. Susan Sexton, owner of the Snack Shack, is deciding how much refrigerator space to devote to four different drinks. Pertinent data...
Given an activity in an advertising project whose planned cost was $12,000 but actual cost to date is $10,000 so far and the value completed is only 70 percent, calculate the cost and schedule...
Which is the best lot-sizing policy for manufacturing organizations?
Chippewas Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2014, to expand its production capacity to meet customers demand for its product. Chippewas issues an...
A process that is considered to be in control measures an ingredient in ounces. Below are the last 10 samples (Each of size n = 5) taken. The population standard deviation is 1.36. (a) What is the...
Robin Shalit, D.D.S., opened a dental practice on January 1, 2014. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental plan...
(Issuance and Exercise of Stock Options) On November 1, 2009, Olympic Company adopted a stock-option plan that granted options to key executives to purchase 40,000 shares of the companys $10 par...
Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firms weighted...
In small groups, identify real life examples of a project that would fit each of the following priority scenarios: a. Time-constrain, Scope-enhance, Cost-accept b. Time-accept, Scope-constrain,...
Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $330,000 Rolls-Royce Phantom. Jack currently has $45,530 that he may invest. He has found a mutual fund...
Homepride Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting...
On June 30, 2015, Wisconsin, Inc., issued $300,000 in debt and 15,000 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company....
1. You own a franchise of rental car agencies in Florida. You recently read a report indicating that about 80 percent of all tourists visit Florida during the winter months in any given year, and...
1. Go to the meeting and argue for abandoning crowdsourcing for now in favor of maintaining the artistic integrity and values that Off the Hook has always stood for. 2. Accept the reality that...
Rick DeNeefe, manager of the Golden Valley Bank credit authorization department, recently noticed that a major competitor was advertising that application for equity loans could be approved within...
Sam Hutchins is planning to operate a specialty bagel sandwich kiosk but is undecided about whether to locate in the downtown shopping plaza or in a suburban shopping mall. Based on the following...
Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is the French Bete Noire. Weekly demand is for 45 cases. Assume demand occurs over 50 weeks per year. The wine is...
Assume your uncle raises bees for honey on his farm. You help him package the honey and sell it on the Internet. Reproduce Figure 1-1 for this small business example. Add a one-sentence description...
Atlanta Company is preparing its manufacturing overhead budget for 2014. Relevant data consist of the following. Units to be produced (by quarters): 10,000, 12,000, 14,000, 16,000. Direct labor: time...
What actions have food marketers taken to stem the threat of a ban on marketing to children? The obesity rate among children in the United States is 17 percenttriple what it was 30 years ago. Whos to...
The comparative statements of Beulah Company are presented below. Additional data: The common stock recently sold at $19.50 per share. Instructions Compute the following ratios for 2014. (a) Current....
Why is least total cost performance not always what a customer prefers? Illustrate a situation that supports your answer?
1. Briefly describe each of the four major challenges that Netflix faces. Which of these four challenges will be the most difficult to address? Why? Which challenge will be the easiest to address?...
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the...
What is an activity variance and what does it mean?
Horeb Company, a ski tuning and repair shop, opened in November 2011. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of...
List six indications that an information system is approaching obsolescence.
As managers use computers and software tools more often, theyll be able to make more rational decisions. Do you agree or disagree with this statement? Why?
1. Why has Dell moved to different kinds of organizational structures over time? 2. Has Dells performance been improved? 3. Search the Internet to find out how Dell has been trying to increase its...
Zucker Management Services opens for business and completes these transactions in November. Nov. 1 Matt Zucker, the owner, invested $30,000 cash along with $15,000 of office equipment in the company....
The following supplementary records summarize Tosca Companys merchandising activities for year 2013. Set up T- accounts for Merchandise Inventory and Cost of Goods Sold. Then record the summarized...
Sussex Company is authorized to issue 100,000 shares of common stock. On August 1, the company issued 5,000 shares at $25 per share. Prepare journal entries to record the issuance of stock for cash...
(Treasury StockCost MethodEquity Section Preparation) Washington Company has the following stockholders equity accounts at December 31, 2010. Common Stock$100 par value, authorized 8,000...
Classification of Land and Building Costs Spitfire Company was incorporated on January 2, 2011, but was unable to begin manufacturing activities until July 1, 2011, because new factory facilities...
Ming Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. (For specific identification, the April 9 sale consisted of 8 units from...
Job costing; actual, normal and variation from normal costing, Chirac & Partners, a Quebec-based public accounting partnership, specializes in audit services, Its job-costing system has a single...
Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1,175. The bonds may be called...
Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is...
The inventory of Wood4Fun and data on purchases and sales for a two-month period follow. The company closes its books at the end of each month. It uses the periodic inventory system. Required 1....
Dewitt Corporation needs to set a target price for its newly designed product M14M16. The following data relate to this new product. These costs are based on a budgeted volume of 80,000 units...
(Multiple choice) 1. The sum of ending inventory and cost of goods sold is a. Net purchases. b. Beginning inventory. c. Goods available. d. Gross profit. 2. The following data come from the inventory...
Iris Beck is a licensed CPA. During the first month of operations of her business, the following events and transactions occurred. May 1 Beck invested $20,000 cash in her business. 2 Hired a...
Angela Petrillo recendy opened her own law office, which she operates as a corporation. The name of the new entity is Angela Petrillo, Attorney. Petrillo experienced the following events during the...
Jurassic Company owns machinery that cost $900,000 and has accumulated depreciation of $380,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair...
Garden Sales, Inc. sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during May. The following information has been...
Why is having multiple health-care plans important for FedEx in slowing down increases in the cost of benefits?
Royale Mortgage Company uses a process costing system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan department for final...
The Hartley-Davis motorcycle dealer in the Minneapolis St. Paul area wants to be able to forecast accurately the demand for the Roadhog Super motorcycle during the next month. From sales records, the...
The marginal product of labor curves corresponding to the production functions in problem 2 are as follows: a. Suppose that the price of good 2 relative to that of good 1 is 2. Determine graphically...
Ultimate Butter Popcorn issues 7%, 15-year bonds with a face amount of $60,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually. At what price...
Pamper Me Salon Inc.'s general ledger at April 30, 2017, included the following: Cash $5,000, Supplies $500, Equipment $24,000, Accounts Payable $2,100, Notes Payable $10,000, Unearned Service...
The following transactions are for Alonzo Company. 1. On December 3, Alonzo Company sold $500,000 of merchandise to Arte Co., terms 1/10, n/30. The cost of the merchandise sold was $330,000. 2. On...
a. Create a data flow diagram of the current system. b. Create a system flow chart of the existing system. c. Analyze the internal control weaknesses in the system. Model your response according to...
Denton Company manufactures and sells a single product. Cost data for the product are given below: Variable costs per unit: Direct materials . . . . . . . . . . . . . . . . . . . . . . . . $ 7 Direct...
Incomplete manufacturing cost data for Horizon Company for 2017 are presented as follows for four different situations. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a...
The Diamond Freight Company has been offered a seven-year contract to haul munitions for the government. Since this contract would represent new business, the company would have to purchase several...
1. What was Walmarts early global expansion strategy? Why did it choose to first enter Mexico and Canada rather than expand into Europe and Asia? 2. What cultural problems did Walmart face in some of...
On January 1, 2008, Hi and Lois Company purchased 12% bonds, having a maturity value of $300,000, for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2008,...
Frame U, Inc., which produces picture frames, has the following master budget income statement for the month of December: The company uses the following estimates to prepare the master budget: Sales...
a. The statement is entitled Consolidated Balance Sheets.'' What does it mean to have a consolidated balance sheet? b. 1. What is the gross amount of current receivables at September 27, 2008? 2....
The following items are from Taperline Corporation on December 31, 2010. Assume a flat 40% corporate tax rate on all items, including the casualty loss. Sales .................. $670,000 Rental...
Cayemberg Company maintains a checking account at the Commerce Bank. At July 31, selected data from the ledger balance and the bank statement are shown below. Analysis of the bank data reveals that...
On May 11, Sydney Co. accepts delivery of $40,000 of merchandise it purchases for resale from Troy Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping...
Reithofer Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and...
Here are comparative statements of financial position for Syal SE. Additional information: 1. Net income for 2017 was ¬103,000. 2. Depreciation expense was ¬32,000. 3. Cash dividends of...
Weighted-average method. Ashworth Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing...
Various cost and sales data for Medco, Inc., are given below for the just completed year: Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare an income statement. 3. Assume that...
Sundance Co. sold merchandise to Butterfield Co. on account, $16,800, terms 2/15, n/30. The cost of the merchandise sold is $12,600. Sundance Co. issued a credit memo for $3,800 for merchandise...
On April 1, Renato Uhrig established Renatos Travel Agency. The following transactions were completed during the month. 1. Invested $15,000 cash to start the agency. 2. Paid $600 cash for April...
Gregs Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March 2015: Required: 1. Calculate ending inventory and cost of goods sold at...
CVP analysis, shoe stores. The WalkRite Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is...
Identify risks for accounting systems that rely heavily on IT functions.
Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is...
The following information is available for Conger Company for the month of January: expected cash receipts $59,000; expected cash disbursements $67,000; and cash balance on January 1, $12,000....
Suppose Wesley Publishings stock has a volatility of 60%, while Addison Printings stock has a volatility of 30%. If the correlation between these stocks is 25%, what is the volatility of the...
Selected transactions from the journal of Eberle Inc. during its first month of operations are presented here. Instructions (a) Post the transactions to T-accounts. (b) Prepare a trial balance at...
The following T accounts show transactions that were recorded by Housing Locators, a firm that specializes in local housing renting. The entries for the first transaction are labeled with the letter...
1 How do you split your time between tradition television and streaming video? 2. How might consumers use heuristics when choosing television shows to watch on Netflix? Viewing needs and preferences...
Do you think concerns regarding ethics will remain central in managerial thinking, or will these concerns eventually become less important? Why?
1. What is the percentage return earned by Darin if he acquires 100 shares, holds the stock for a year, and sells the stock for $80? 2. What is the percentage return earned by Victor if he acquires...
Taveras Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2014 Projected benefit obligation .......... $2,737,000...
Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is December 31, 2011, and the principal and...
Renkas Heaters selected data for October 2014 are presented here ( in millions): Direct materials inventory 10/ 1/ 2014 ........$ 105 Direct materials purchased .............. 365 Direct materials...
The bookkeeper of Lone Star Landscaping prepared the company's balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeper knew that the...
Al Medina, D.D.S., opened an incorporated dental practice on January 1, 2017. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had...
Keyser Beverage Company reported the following items in the most recent year. Net income $40,000 Dividends paid 5,000 Increase in accounts receivable 10,000 Increase in accounts payable 7,000...
List six potential managerial behaviors that can harm a firms value. You have been hired as a consultant to Kulpa Fishing Supplies (KFS), a company that is seeking to increase its value. The companys...
It is January 2nd. Senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 50,000 shares of stock plus...
At December 31, 2017, Grand Company reported the following as plant assets. During 2018, the following selected cash transactions occurred. April 1 Purchased land for $2,130,000. May 1 Sold equipment...
Milea Inc. experienced the following events in 2016, its first year of operations: 1. Received $20,000 cash from the issue of common stock. 2. Performed services on account for $56,000. 3. Paid the...
Willie Lohmann travels from city to city in the conduct of his business. Every other year he buys a used . car for about $12,000. The auto dealer allows about $8000 as a trade-in allowance with the...
Bank Reconciliation and Adjusting Entries Presented below is information related to Haselhof Inc. Balance per books at October 31, $41,847.85; receipts $173,523.91; disbursements $164,893.54. Balance...
1. What symptom(s) exist in this case to suggest that something has gone wrong? 2. What are the root causes that have led to these symptoms? 3. What actions should the company take to correct these...
Entrepreneur magazine ranks franchises. Among the factors that the magazine uses in its rankings are growth rate, number of locations, start-up costs, and financial stability. A recent ranking listed...
Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2010, the following accounts were included in stockholders equity. Preferred...
Ludwick Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2010. Annual rental payments of $40,000 are to be made at the beginning of each lease year...